Berendina Micro Investments Company (BMIC) of Sri Lanka has secured a loan guarantee of EUR 375,000 (USD 426,000) from the Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, allowing the microfinance institution to secure funding from an unidentified third party. BMIC will use the funding to boost its microlending in rural Sri Lanka, seeking to further its mission of improving poor people’s living conditions.
BMIC was established in 2007 as Berendina Microfinance Institute. BMIC, which does not accept deposits, offers loans tailored for businesses, dairies, farming, emergencies, and “asset building” efforts such as housing and education. It delivers these services through 28 branches and “through 55 plantation estates.” As of 2018, BMIC had a loan portfolio of LKR 2.9 billion (USD 16 million), serving 99,200 active borrowers. For the same year, it reported return on assets of 1.9 percent and return on equity of 7.2 percent.
BMIC operates as part of a group that was started in 1987 as the Berendina Stitching, working to alleviate poverty in the Garagoda village near the city of Colombo. As of 2017, Berendina operates through BMIC, Berendina Development Services and the Berendina Employment Centre. Berendina Development Services, which focuses on poverty alleviation, social inclusion and socio-economic empowerment, had assets of LKR 1.6 billion (USD 9 million) as of 2017. The Berendina Employment Centre supports rural youth with career guidance, vocational training and job fairs. During 2017, it served approximately 17,000 youth and provided 12,000 scholarships.
GCA Foundation was launched in 2008 by the directors of Credit Agricole, a French retail bank, and Muhammad Yunus, the founder of the Grameen Bank of Bangladesh. The foundation provides funding and technical assistance to microfinance institutions and other social businesses with the aim of promoting financial inclusion and social entrepreneurship. As of January 2019, GCA Foundation has commitments of approximately EUR 82 million (USD 92 million) outstanding to 79 partners in 35 countries in Africa and Eurasia. Its partners serve approximately 3.9 million customers, of whom 75 percent are women and 80 percent live in rural areas.
By Anuhya Tadepalli, Research Associate
Sources and Additional Resources
Direct contact with the Grameen Credit Agricole Foundation
BMIC home page
https://berendina.org/bmi_micro_credit.php
BMIC Annual Report 2017
https://berendina.org/assets/annual_report/bmi_annual_report.pdf
Berendina home page
https://berendina.org
Grameen Credit Agricole Foundation homepage
http://gca-foundation.org/
GCA Foundation 2017 Annual Report
http://gca-foundation.org/data/grameen/publications-gca/rapport-annuel/2017-Annual Report-ENG.pdf
MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $989k to WAGES of Togo, $445k to Azeri Star of Azerbaijan, $153k to Berendina Microfinance of Sri Lanka
https://www.microcapital.org/microcapital-brief-grameen-credit-agricole-microfinance-foundation-gcamf-loans-989k-to-wages-of-togo-445k-to-azeri-star-of-azerbaijan-153k-to-berendina-microfinance-of-sri-lanka/
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